Pradhan Mantri Awas Yojana - Urban 2.0 (PMAY-U 2.0): Verticals and Eligibility
Last updated: 2026-11-13 · MockMentor
Pradhan Mantri Awas Yojana - Urban (PMAY-U) began on 25 June 2015. Its second phase, PMAY-U 2.0, runs for five years from 1 September 2024 and aims to house 1 crore urban poor and middle-class families, with ₹10 lakh crore of investment and ₹2.30 lakh crore of Government assistance.
In one line: help for urban families without a pucca house to build, buy or rent one, through four routes, including an interest subsidy on home loans.
At a glance
| Item | Details |
|---|---|
| First launched | 25 June 2015 |
| PMAY-U 2.0 | Five years from 1 September 2024 |
| Target | 1 crore urban families |
| Investment | ₹10 lakh crore; Government assistance ₹2.30 lakh crore |
| Income groups | EWS up to ₹3 lakh, LIG ₹3 to 6 lakh, MIG ₹6 to 9 lakh |
| House size | At least 30 sq m carpet area |
| Coverage | All statutory towns |
Four verticals
| Vertical | What it does |
|---|---|
| Beneficiary Led Construction (BLC) | EWS families build on their own land |
| Affordable Housing in Partnership (AHP) | Projects with at least 25% (and 100+) EWS houses; housing vouchers for private projects |
| Affordable Rental Housing (ARH) | Rental homes for migrants, working women, industrial workers and students |
| Interest Subsidy Scheme (ISS) | 4% subsidy on the first ₹8 lakh of a home loan up to ₹25 lakh; maximum ₹1.80 lakh |
Other facts
- Central help of ₹2.50 lakh a unit under BLC and AHP in most States (60:40), ₹2.25 lakh in North-Eastern and Himalayan States (90:10).
- Beneficiaries pay at least 25% of the cost.
- The Credit Risk Guarantee Fund for affordable housing loans moved from NHB to NCGTC, with its corpus raised to ₹3,000 crore.
Possible exam questions
- Why does India's urban housing shortage persist? Assess the role of rental housing in PMAY-U 2.0.
- How does an interest subsidy affect affordable housing demand and bank lending?
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